Final Results

Electrocomponents PLC
30 May 2001


                                    Embargoed to 7:00am, Wednesday 30 May 2001


                            PRELIMINARY STATEMENT

Electrocomponents plc, the major electronic, electrical and industrial
supplies distribution Group, today announces its results for the year ended 31
March 2001.

The highlights of the Group are as follows:

Sales of continuing operations                   £823.9m Up           15.8%

Operating profit of continuing operations*       £130.9m Up           10.7%

Profit before tax*                               £124.1m Up           7.6%

Earnings per share*                              20.6p   Up           8.4%

Dividend per share                               13.8p   Up           15.0%

Net debt                                         £75.5m  Lower by     £20.3m



* Before amortisation of goodwill arising from the Allied acquisition.

 Before exceptional loss on closure of Pact.



Commenting on the results, Mr Roy Cotterill, the Chairman said:



This has been a year during which we have begun the process of delivering the
major strategic initiatives introduced in the recent past: our US operation
has performed very well; the Japanese company has proved the relevance of the
RS Model to that economy and is on track; our operation in the Peoples
Republic of China has progressed well, whilst a rapidly increasing number of
our customers are finding the Internet a convenient way to conduct their
business.



While trading conditions have become more challenging in some of our markets
since the end of the year, we believe these conditions will prove to be
cyclical.



In the United States the large sales gains achieved by Allied this time last
year have not been fully retained, whilst sales have slowed in the United
Kingdom.  In both markets there are early indications that trading conditions
are stabilising.  Elsewhere sales growth rates are slightly lower than last
year but sufficient to compensate for the United States.



Our gross margins and service to customers are improving and we expect the
outcome for the year to show further progress.





We are maintaining our investment in the strategic development of the Group
which the Board is confident will bring high returns to shareholders in future
years.



Roy Cotterill

30 May 2001





Enquiries:


Roy Cotterill, Chairman                  Electrocomponents plc    0207 567 8000*

Bob Lawson, Chief Executive              Electrocomponents plc    0207 567 8000*

Jeff Hewitt, Deputy Chairman /           Electrocomponents plc    0207 567 8000*
Finance Director                                                          

Diana Soltmann / Andy Berry              Flagship Consulting Ltd  0207 299 1500


* Available to 17:00 on 30 May, thereafter 01865 204000.


The results and analyst presentation are published on the Corporate website at
www.electrocomponents.com


               CHAIRMAN'S STATEMENT ON THE PRELIMINARY RESULTS

                       FOR THE YEAR ENDED 31 MARCH 2001

The year under review has been a period during which we have begun the process
of delivering the major strategic initiatives introduced in the recent past:
our US operation, Allied Electronics, has a full 12 months' trading in the
results and has performed very well; the Japanese company has proved the
relevance of the RS Model to that economy and is on track; our operation in
the Peoples Republic of China, with the stocking location in Shanghai, has
progressed well, whilst a rapidly increasing number of our customers are
finding the Internet a convenient way to conduct their business.



Sales excluding Pact have increased by 15.8% to £823.9m and operating profit
before amortisation of goodwill has increased by 10.7% to £130.9m.



The cash generative capability of the Group is demonstrated again by the
reduction in debt from £95.8m to £75.5m.



For several years Pact had not been considered a core part of our business and
in 2000 it was decided to either sell it or close it.  After a thorough
examination it was found that a sale on reasonable terms would not be
possible, so the business has been closed.



We are now and will remain focused entirely on the high service distribution
of technical products to technical people.



Ten years ago, Electrocomponents was a small, high service distributor with
all its RS operations in the British Isles.  We decided to focus on high
service distribution, to expand this activity organically and to dispose of
other peripheral and less profitable non-core operations.  The aim was to
achieve growth by increasing the range of products, the range of services and
the geographic areas in which we operate.



Today we have 26 successful operations in every major economy.  At the moment,
each has a different number of products and different levels of service.   In
the UK we offer over 129,000 products, and if a customer places an order
before 8 pm on any day of the year, the order will always be despatched before
10 pm that evening.



Our strategy is simple; we aim to bring every operation in the world at least
up to the level of service available in the United Kingdom and to the same
level of market penetration.  This is 'the Prize' which is achievable.



Your Board continues to show its confidence in the future performance of the
Group by recommending a final dividend of 9.55p, up by 15.1%, making a total
of 13.8p for the year, an increase of 15.0%.



We were pleased to achieve entry to the FTSE 100 index of largest UK companies
in September 2000 after having been high on the reserve list for some time.
Since the initial listing in 1967, Electrocomponents has not raised any new
capital from the stock market and has funded its largely organic growth
through internal cash generation and limited use of debt. Over this 34 year
period the market capitalisation has increased 1000-fold, such that one
thousand pounds invested at flotation in 1967 was worth ca. one million pounds
at the time of entering the FTSE 100, without re-investing dividends: and our
dividends per share have increased every year. This is a remarkable history of
sustained growth of shareholder value over the long term and is testimony to
the value of the RS business model.



Management



At the Annual General Meeting on 20th July, Bob Lawson will retire as Chief
Executive to become Chairman Designate and Ian Mason will become Chief
Executive.  At the Interim Announcement on the 7th November, Bob will assume
my role as Chairman.



I have had a marvellous time as Chairman of Electrocomponents and of the
evolution, I say only this: If Bob and Ian receive the same wonderful support
from the employees and the Board that I have enjoyed - and I know that they
will - then the past successes will, at the very least, be matched by future
successes.



Financial Performance



Sales, profits and earnings



Group sales including Pact increased by 12.3% to £855.1m. Before goodwill
amortisation and exceptional charges operating profit rose 10.2% to £130.9m,
profit before tax rose 7.6% to £124.1m and earnings per share rose 8.4% to
20.6p.



The year included the Pact business for nine months to 31 December 2000, when
the decision was taken to close the business.  It was subsequently closed at
an exceptional loss of £6.9m before tax. In the nine months Pact contributed £
31.2m to turnover and broke even on profits.  The cash inflow to the Group
from the closure will be more than £8m of which £3.9m was realised in the
year.  These exclude proceeds from the future sale of the property.



The continuing operations comprising the RS and Allied businesses had turnover
of £823.9m and growth of 15.8%, with operating profit before goodwill
amortisation of £130.9m, a growth of 10.7%. Allied was acquired on 2 July 1999
and so was in the prior year comparative for nine months.  Excluding Allied
the growth in turnover was 10.0%.  In its first full year in the Group, Allied
contributed £26.4m to Group profits, more than covering the interest costs
from financing the acquisition and the amortisation of goodwill that arose
from the acquisition.



Exchange rate movements had no translation effect on our reported operating
profit. At constant exchange rates, sales would have been £4.8m lower.
Adjusting sales for the number of trading days in the year and to constant
exchange rates gives an underlying sales growth of the continuing operations
of 12.3% (including Allied on a day adjusted basis).



For the continuing operations, the gross margin was 49.1%, down from 50.5%
last year due to the larger proportion of Allied sales at a lower gross
margin.



Operating margins of continuing operations (before amortisation of goodwill)
declined from 16.6% to 15.9% due to further significant investments in the
development of the Group. Our higher growth businesses are our smaller
businesses that, due to scale effects, have higher costs relative to sales
than our most developed, but slower growth business in the UK. The overall
margin development in the year reflects this change in mix of cost bases
across the Group. Additionally our strategic investments have continued, as
described below, including: e-Commerce with costs of £4.0m, compared to £2.5m
last year, China with the costs of the Chinese language catalogue and Shanghai
warehouse amounting to £2.5m, whilst Japan losses declined to £6.3m from £7.0m
last year. Given our share price development relative to the peer group, the
funding of the Long Term Incentive Plan required a charge of £2.5m in the year
compared to £1.5m last year.



Overall process costs were £65.7m or 8.0% of continuing sales, compared to
8.3% last year. The largest component of these costs was again Information
Systems, accounting for about 36% of the total.



The interest charge was £6.8m compared to £3.5m last year, mainly due to a
full years'  financing cost for Allied. The tax rate of 28%, based on profit
before tax, goodwill amortisation and adjusted for the exceptional loss, was
lower than the prior year 29% as the higher profit generated by Allied was
again shielded from tax by the use of earlier tax losses and by the tax
deduction allowed for goodwill amortisation in the United States.  In
accordance with FRS10 'Goodwill and intangible assets', the  £214.8m of
goodwill that arose on the acquisition of Allied is being written off over 20
years and the amortisation was £11.6m.



Profit before tax and after goodwill amortisation and exceptional loss was £
105.6m and the effective tax rate on this profit was 31.2%. After tax, the
profit for the year amounted to £72.6m, down 1.8%. Earnings per share before
goodwill amortisation and exceptional loss increased 8.4% to 20.6p from 19.0p,
after goodwill amortisation increased 4.7% to 17.9p and after the exceptional
charge declined 1.8% to 16.8p. With the recommended final dividend of 9.55p
per share, dividends rose 15.0% to 13.8p, which were covered 1.5 times by
earnings before goodwill amortisation and the exceptional charge.



Cash flow and balance sheet



Free cash flow for the year was £78.6m (£66.9m last year).  Operating cash
flow for continuing operations was again healthy at £138.0m up from £121.8m
last year and representing 116% of operating profit.



Working capital cash outflows for continuing operations amounted to £14.3m
compared to £16.7m last year. Cash outflow on stocks was £8.6m compared to £
19.9m last year. Stocks that were built last year to support service levels,
given shortages of certain electronic components, were partly released during
this year. For continuing operations, the stock turn was 2.5 times compared to
2.4 times last year. Debtors recorded an outflow of £4.5m, compared with an
outflow of £15.7m last year. For continuing operations, debtor days were 53.8
days compared with 55.9 days last year. There was a cash outflow on creditors
of £1.2m, compared to an inflow of £18.9m last year due to stock movements.
For continuing operations, creditor days were 40.1 days a decrease from 43.9
days last year.



The net cash inflow from discontinued operations was £4.2m, of which Pact was
£4.9m including £3.9m since the closure announcement.



Capital expenditures were £24.3m and while higher than last year (£16.6m) were
lower than we expected as investments in systems took longer to move into the
spending phase. Looking forward, systems investments will increase
significantly reaching over £40m over the next three years. Warehouse
investments will also increase over this period to a similar magnitude and
will include facilities in Germany and Italy and smaller ones elsewhere.



After higher tax and dividend payments the decrease in net debt was £20.3m,
giving year-end net debt of £75.5m.



Profit before tax (after goodwill amortisation but before the exceptional
charge) on net assets was 27.0%, down from 28.7% last year. These returns
remain substantially higher than the Group's cost of capital. Over recent
years the investments made in implementing the Group strategy have reduced the
reported returns.



Our total shareholder return over the year was a negative 12.0% driven by the
share price decrease between the year-ends and this compares with the negative
10.8% return on the Allshare index.



Strategic Initiatives



Our strategic initiatives are not only critical to our geographic development
but also differentiate us from competitors.



Allied:  Allied is our North American arm, acquired from Avnet in July 1999.
Last year sales grew by 24.6% to £148.7m (adjusted for trading days and at
constant exchange rates). This sales growth includes an adjustment for the
first quarter of last year when we did not own the business.  Contribution
grew to £26.4m and this has been achieved after continued investment in sales
offices and infrastructure. These investments will allow Allied to grow in the
large but fragmented US market as smaller participants will not be able to
match such investments and their service levels will suffer. Many are now
putting themselves up for sale, but we will not acquire them as such bolt on
companies would not bring value to the Group.



Despite current conditions, our view remains that the sustainable growth for
Allied in the years ahead is in the mid-teens.  This will come partly from the
long term consolidation of the market and partly from underlying growth.



We have strengthened the management team with the appointment of Bob Pfleg as
Executive Vice President, with the intention that he succeed David Yaniko as
President on his retirement in July this year.  Bob has long experience of US
and European component distribution from his various roles within 3M.



Looking ahead, Allied remains focused on meeting the needs of customers from
its 74 locations. Customer research indicates that providing our service
through these local offices is valued and differentiates us significantly from
our competitors.



Allied is a hugely valuable addition to Electrocomponents and is now beginning
to play a full role, for example through the procurement and supply of US
specification products to our growing markets in Asia.



Japan:  After two years trading, Japan has met all our objectives. Sales have
grown exponentially by 184.8%(adjusted) to £8.6m and are now ahead of our
original plan, while losses of £6.3m are in line with expectations with
breakeven remaining on track for the year to 31 March 2004.



More importantly, RS Japan is now recognised as the provider of a unique and
valued service to engineers. The loyalty of customers continues to demonstrate
the value of the service we offer and we now have an active customer base of
over 20,000 engineers.



A fifth catalogue was published in March and now contains 35,000 products, a
40% increase since launch. e-Commerce sales now represent about 15% of the
total with some customers coming to us without a catalogue or any other
physical media. We have decided to roll out the Group's more advanced
e-Purchasing capabilities in Japan in order to capitalise further on our
unique market position.



Under its dynamic local leadership, we are confident that RS Japan will
achieve our development objectives.



People's Republic of China:  A further major initiative is the development of
our offer in the People's Republic of China. Sales grew by a remarkable 46.3%
(adjusted) in the year.



The local language and locally priced catalogue, CD-Rom and website containing
60,000 products, launched at the start of the year, have been a great success.
The second edition was launched in April 2001 confirming to our Chinese
customers our commitment to the market. In September 2000, our first
locally-stocked warehouse was opened to serve metropolitan Shanghai and to
allow us to offer customers there a standard of service similar to that which
we offer in our more developed markets.  Our first e-Procurement contract has
been agreed with a major Chinese utility, using the web-site to provide
on-line, small quantity supplies. This type of service has been welcomed by
customers and once more underlines the power of our offer.



e-Commerce:  Currently, our total e-Commerce activity accounts for about 6% of
Group sales, and is growing fast in all markets. Although the hype surrounding
'dot.coms' has subsided, customers are continuing to explore the internet
options open to them and find that RS is an able and efficient partner, with
practical and effective solutions that work.



Our initiatives in e-Commerce affect all our businesses and activities. We
have no doubt that building a suite of e-Commerce capabilities on the back of
our strong brand and infrastructure is now, and will continue to be, a winning
combination. For Electrocomponents, e-Commerce is not merely the creation of
an on-line catalogue, but is a major opportunity to create unique services for
customers that can only be provided from this medium. For example, the
e-Purchasing capability that is now available to customers in the UK and will
shortly be rolled out across Europe, enables customers to make substantial
cost-savings on small order buying. Most importantly, customers find that
e-Purchasing via the RS web-sites is particularly valuable as a low cost and
low risk entry into internet trading.  For large companies that decide to
invest in e-Procurement packages we are one of the very few companies in
Europe that can provide the required support known as 'punch out', which makes
such packages usable in practice, by providing the required rich content.



e-Commerce is important to our market development strategy and we will
continue to invest to maintain our clear leadership position. Over the year,
revenue expense in e-Commerce increased from £2.5m to £4.0m and capital
investment increased sharply from £0.3m to £3.6m to support these critical
initiatives.



Information Systems:  The last of our major initiatives is centred upon
building our information backbone across the entire Group. Our aim is to
construct even more standardised and usable databases of customers, suppliers
and products across all our markets. Aligned to this is the communications
infrastructure which will deliver timely and accurate information to our
customers, suppliers and, of course, internally within the Group.



In the year under review, the revenue cost of Information Systems, included
within Process costs, was £23.6 and we anticipate capital spending of around £
40m in total over the next three years.



Operations



Across the RS businesses there has been strong growth in the Rest of Europe,
Japan, and in the Rest of the World, particularly Asia, and in e-Commerce.
There has been more modest growth in the UK and Australasia.  Allied's
progress and developments in e-Commerce have been described above.



UK:  In spite of the decline in manufacturing, the strong pound and depressed
activity in our traditional manufacturing base, the UK returned to growth.
During the year, we continued to target and generate new customers in the
growing service sector, although they are less productive in their early
years. Today, manufacturing customers make up about half of our customer base,
but still generate the larger part of our sales.



We have continued to emphasise the quality of our service, which was
recognised by the Electronics Weekly service award. In response to customer
research we moved from three to two catalogues a year.  The funds released
were re-allocated to marketing tools, such as specialogues and the '
e-Purchasing' internet programme.



e-Purchasing reduces our customers' transaction costs and provides a low-risk
entry to internet buying. There are now over 150 pilots and sites in operation
compared to 100 in September 2000. Overall customer demand has been high which
has raised e-Commerce to 7% of total UK sales, compared with 4% a year ago.



The number of products in the March 2001 catalogue was up 10.3% to 129,000. We
are more actively encouraging customers to buy our existing, successful
products while also adding more products for which there is a demonstrable
demand from customer requests.



We have invested in systems and skills to ensure that we derive even higher
value from the increased direct marketing investments.



Contribution margins declined slightly to 32.0% of sales as extra investments
were made in e-Commerce.



Exports from the UK grew by 11.6% (adjusted).



Rest of Europe:  Continental Europe achieved strong sales growth of 21.8%
(adjusted) resulting in sales of £203.6m. Overall return on sales rose from
17.9% to 18.9%. High growth coupled with improving returns demonstrates very
well the Electrocomponents strategy in action.



With a current turnover of £203.6m, penetration of the rest of Europe is only
one tenth relative to our current UK penetration, showing the massive market
potential which we continue to develop rapidly. We are pursuing a common
approach as we continuously find that the RS business model can confidently be
transferred from one market to another.



France:  We achieved sales growth in France of 22.9% (adjusted). As a result
of our heavy emphasis on marketing aimed at both developing existing customers
as well as attracting new ones, active customers rose by 11% during the year.
Agreements to supply a number of French multi-nationals globally were signed
as the result of the strong relationships with these customers in France.



During the year, there were successful specialogues on IT, Automation, and
Mechanical products. The number of products available rose by 11,000 to
88,000, and our high service levels were maintained.



Germany:  Sales in Germany grew by 21.5% (adjusted). Service levels have been
improved through investments in inventory management software and our ability
to fulfil orders by going direct to customers across borders. Further
improvements are planned. We approved investment for the building of a new
warehouse, which will be operational by the end of 2002. The number of
products increased by 8,000 to 79,000 and active customers rose by 6%.



Italy: Sales in Italy grew by 23.6%(adjusted), similar to our other main
European markets. Service levels were improved and enhanced technical support
was offered, driving part of the growth. RS Italy piloted new marketing
initiatives to increase the breadth of products bought by each customer, and
this should show benefits in the present year. The number of products on offer
rose from 75,000 to 80,000 and active customers increased by 4%.



Other European markets: Our operations in Benelux, Spain, Ireland, Scandinavia
and Austria grew by 18.7% (adjusted). These businesses are the equivalent of
another large European RS company and are managed as such. The number of
products increased to 55,000, service levels were improved, and we rolled out
trading web-sites which were well-accepted.



Rest of the World:  Our operations in the Rest of the World achieved sales
growth of 17.1% (adjusted) and sales of £37.0m. Asia accounts for most of this
segment.



Asia:  A new regional general manager for Asia was appointed to help leverage
investments across the region. However, the sub-regions of North Asia, South
Asia and Australasia still retain local management and local focus. A project
to rationalise the product range to be more in keeping with customers needs --
including the addition of US specification products from Allied -- was
implemented. The offer was 57,000 products, and service levels were improved.



North Asia: North Asia, made up of China, Hong Kong, and Taiwan, achieved
excellent growth of 26.9% (adjusted) and as highlighted above, The People's
Republic of China is our most important strategic market in Asia. The
investments in China are making the major contribution to our overall growth
in the region and reflect the quality of our dynamic North Asia team.



South Asia:  Singapore, Malaysia and the Philippines grew by 26.7% (adjusted).
Investment in customer relationship management software was made in Singapore
which will be rolled out to the rest of Asia. Malaysia led the group in
e-Commerce, achieving 25% of sales in some months.



Australasia:  Australasia returned to growth of 1.3% (adjusted) after several
flat years. A new management team is taking the actions necessary to achieve
sustainable growth. Profitability has been maintained despite the
difficulties.



Other countries:  Our other, small operating companies achieved a combined
growth of 41.8% (adjusted).




Processes



The operational processes allow us to use our skills to drive pace and
effectiveness and reduce costs. Establishing these processes has taken
considerable investment, but the benefits are now being realised.  Our
development in Information Systems are described above.



Supply Chain:  The key requirement of the Supply Chain process is to ensure
that the stock to meet all customers' demands is available for same-day
despatch in the most effective way. Many initiatives have been undertaken to
improve the efficiency of our logistics activities.  These range from
developing closer working relationships with third party carriers to more
co-ordinated management of stock across the Group.  Further investments have
been made to strengthen the regional logistics strategy; Manugistics, our
chosen demand forecasting and supply planning system, is now in place in our
four largest European markets and will be implemented in Japan and in
Singapore, our Asian hub, later this year. Further development in cross-border
fulfilment has enabled us to provide better service to customers and to
generate efficiencies.



Facilities:  The Facilities Process continues to maximise the efficiency of
our warehousing. However, in Germany and Italy, growth demands new facilities.
In Germany, we have acquired an 82,000sq.m greenfield site at Bad Hersfeld,
140km north of Frankfurt, and the first phase is forecast for completion and
occupation in late 2002. In Italy, we will move into a leasehold warehouse
near our present site by the end of this year, and early next year into new
offices.



Product Management:  Product Management determines the most effective range to
meet customers' needs. This depends both on close links with the sales and
marketing teams in operating companies, so that the products on offer match
customer demands, and also on building close working relationships with our
extensive supplier base. The re-shaped Asian catalogue, launched in April
2001, contains locally sourced Asia brands as well as key US-specification
products sourced through Allied.



Strategic Alliance:  The strategic alliance with Avnet in Europe made good
progress; the enhanced semi-conductor offer successfully created revenue and
stock efficiencies in RS's European businesses. Both RS and Avnet are
determined to extend the product range into further, related areas.



Media Publishing:  This embraces all media: over 25 catalogues and CD
versions, including in Japanese and Chinese, as well as the provision of
content for the Group's web sites. Efficiencies come through technological
advances and economies of scale; significant savings have been achieved
through rationalising paper and print purchasing.



Human Resources:  People are critical to our success and their quality
determines our ability to fulfil our potential. The Human Resources team works
closely with senior management to identify the skills required by the Group to
support the strategy. Our priority is to invest in the recruitment,
development and retention of the most talented individuals. We now have 30 of
our best young managers from around the world on Accelerated Potential
programmes which develop them through international job moves and involvement
in strategic projects. For the past year a revised annual bonus scheme was in
place for management, linked more closely to Group results and the creation of
shareholder value.



Summary



Looking ahead, our markets are tougher than last year, but this creates
additional opportunities for our particular high service offer to customers.
In spite of the more difficult conditions, we remain committed to being the
world leader in high service distribution, and the year under review has been
a significant step forward.




Current Trading



While trading conditions have become more challenging in some of our markets
since the end of the year, we believe these conditions will prove to be
cyclical.

In the United States the large sales gains achieved by Allied this time last
year have not been fully retained, whilst sales have slowed in the United
Kingdom.  In both markets there are early indications that trading conditions
are stabilising.  Elsewhere sales growth rates are slightly lower than last
year but sufficient to compensate for the United States.

Our gross margins and service to customers are improving and we expect the
outcome for the year to show further progress.



We are maintaining our investment in the strategic development of the Group
which the Board is confident will bring high returns to shareholders in future
years







Roy Cotterill

Chairman

30 May 2001





Consolidated Profit
and loss account
For the year ended
31st March 2001


                          2001         2001  2001       2000         2000  2000
                            £m           £m    £m         £m           £m    £m
                    Continuing Discontinued       Continuing Discontinued
                    Operations   Operations Total Operations   Operations Total

Turnover (Note 1)        823.9         31.2 855.1      711.2         50.2 761.4

Cost of sales           (419.5)       (24.7)(444.2)   (352.3)      (40.8)(393.1)

Gross profit             404.4          6.5 410.9      358.9         9.4  368.3

Distribution and        (260.3)        (6.5)(266.8)   (230.8)       (8.8)(239.6)
marketing expenses

Administration expenses
- before                (13.2)            - (13.2)      (9.8)        (0.1) (9.9)
amortisation of goodwill
- amortisation of       (11.6)            - (11.6)      (8.0)            - (8.0)
goodwill

                        (24.8)            - (24.8)     (17.8)       (0.1) (17.9)

Operating profit (Note 1)
 - before                130.9            - 130.9      118.3          0.5 118.8
amortisation of goodwill
 - amortisation of      (11.6)            - (11.6)      (8.0)            - (8.0)
goodwill

                         119.3            - 119.3      110.3          0.5 110.8

Exceptional loss on          -        (6.9) (6.9)          -            -     -
closure (Note 2)

Net interest             (6.8)            - (6.8)      (3.5)            - (3.5)
payable

Profit on ordinary       112.5        (6.9) 105.6      106.8         0.5  107.3
activities before taxation

Profit before                               124.1                         115.3
taxation, amortisation of
goodwill and exceptional loss

Taxation on profit                          (33.0)                        (33.4)
on ordinary
activities (Note 3)

Profit on ordinary                           72.6                          73.9
activities after taxation

Dividend                                    (59.8)                        (51.9)

Retained profit for                          12.8                          22.0
the financial year

Earnings per share

Basic (Note 4)
Before amortisation                         20.6p                         19.0p
of goodwill and
exceptional loss

After amortisation                          16.8p                         17.1p
of goodwill and
exceptional loss

Dividend per share
                                  
Interim (paid)                              4.25p                         3.70p
                                            
Final (proposed)                            9.55p                         8.30p
(Note 5)
                                            13.8p                         12.0p

Consolidated Statement of Total Recognised
Gains and Losses

Profit for the                               72.6                          73.9
financial year
Translation                                  24.4                         (6.0)
differences

Total recognised                             97.0                          67.9
gains and losses
relating to the year


All profits and losses shown are stated at historical cost.

The statement of movements on Group reserves is at note 6.



Consolidated Balance Sheet
As at 31 March 2001
                                                                2001      2000
                                                                  £m        £m
Fixed assets
Intangible fixed assets                                        219.7     205.7
Tangible fixed assets                                          133.3     126.9
Investments                                                      0.3       0.2
                                                               353.3     332.8


Current assets
Stocks                                                         165.3     164.7
Debtors                                                        168.9     163.9
Investments                                                      6.7      24.1
Cash at bank and in hand                                        10.6      17.2

                                                               351.5     369.9

Creditors: amounts falling due within one year               (202.1)   (206.7)

Net current assets                                             149.4     163.2
Total assets less current liabilities                          502.7     496.0
Creditors: amounts falling due after more than one year       (76.6)   (109.9)
Provisions for liabilities and charges                         (9.6)    (11.6)
                                                               416.5     374.5


Capital and reserves
Called-up share capital                                         43.4      43.3
Share premium account                                           34.9      31.2
Profit and loss account                                        338.2     300.0
Equity shareholders' funds                                     416.5     374.5




Consolidated Cash flow statement
For the year ended 31st March 2001

                          2001         2001  2001       2000         2000  2000
                            £m           £m    £m         £m           £m    £m
                    Continuing Discontinued       Continuing Discontinued
                    Operations   Operations Total Operations   Operations Total

Reconciliation of
operating profit to
net cash inflow from
operating activities

Operating profit         119.3            - 119.3      110.3          0.5 110.8
Amortisation of           11.6            -  11.6        8.0            -   8.0
goodwill
Depreciation and          21.4          0.4  21.8       20.2          0.6  20.8
other amortisation
(Increase) decrease      (8.6)          9.2   0.6     (19.9)        (1.8) (21.7)
in stocks
(Increase) decrease      (4.5)          3.1 (1.4)     (15.7)          2.1 (13.6)
in debtors
(Decrease) increase      (1.2)        (7.8) (9.0)       18.9        (0.1)  18.8
in creditors

                         138.0          4.9 142.9      121.8          1.3 123.1

Costs in respect of          -        (0.7) (0.7)          -        (0.4) (0.4)
prior year closures
Net cash inflow          138.0          4.2 142.2      121.8          0.9 122.7
from operating activities

CASH FLOW STATEMENT

Net cash inflow          138.0          4.2 142.2      121.8          0.9 122.7
from operating activities

Returns on               (6.7)            - (6.7)      (1.7)            - (1.7)
investments and 
servicing of finance
Taxation                (32.6)            - (32.6)     (36.6)        (0.7)(37.3)
Capital expenditure     (24.3)            - (24.3)     (16.6)        (0.2)(16.8)
and financial investment
Free cash flow            74.4          4.2  78.6       66.9            -  66.9
Acquisitions                                    -                        (241.6)
Equity dividends                            (54.3)                        (47.2)
paid
Cash inflow                                  24.3                        (221.9)
(outflow) before
use of liquid
resources and financing
Management of                                18.2                          67.2
liquid resources
Financing
                                 
Shares                                        3.8                           5.2
                                            
Loans                                       (46.6)                         125.3
Decrease in cash in                         (0.3)                         (24.2)
the year

Reconciliation of
net cash flow to
movement in net debt

Decrease in cash                            (0.3)                         (24.2)
Management of                               (18.2)                        (67.2)
liquid resources
Financing - loans                            46.6                        (125.3)
Change in net debt                           28.1                        (216.7)
relating to cash flows
Translation                                 (7.8)                           0.3
differences
Movement in net                              20.3                        (216.4)
debt for the year
Net (debt) funds at                         (95.8)                        120.6
1 April 2000
Net debt at 31                              (75.5)                        (95.8)
March 2001 (note 7)



      Notes to the Preliminary
      Statement
      For the year ended 31st
      March 2001

1.    Segmental analysis                                             2001  2000
                                                                       £m    £m
a.    By class of business

      Turnover:                  RS / Allied - continuing           823.9 711.2
                                 operations
                                 Pact - discontinued                 31.2  50.2

                                                                    855.1 761.4

      Operating profit:          RS / Allied - continuing           196.6 177.4
                                 operations
                                 Pact - discontinued                    -   0.5
                                 Contribution - before amortisation 196.6 177.9
                                 of goodwill
                                 Groupwide process costs            (65.7)(59.1)
                                 Amortisation of goodwill*          (11.6) (8.0)
                                                                    119.3 110.8

      Net assets:                RS / Allied - continuing           341.5 315.9
                                 operations
                                 Pact - discontinued                  5.9  18.3
                                 Net operating assets (excluding    347.4 334.2
                                 goodwill)
                                 Net debt                           (75.5)(95.8)
                                 Unallocated net assets             144.6 136.1
                                                                    416.5 374.5

      Unallocated net assets     Intangible fixed assets -          219.7 205.7
      comprise:                  goodwill*
                                 Corporation tax                    (24.1)(22.1)
                                 Proposed dividend                  (41.4)(35.9)
                                 Provisions for liabilities and     (9.6) (11.6)
                                 charges
                                                                    144.6 136.1

b.    By geographical destination

      Turnover:                  United Kingdom                     443.6 453.3
                                 Rest of Europe                     209.8 181.2
                                 North America                      147.9  84.5
                                 Japan                                8.6   2.8
                                 Rest of World                       45.2  39.6
                                                                    855.1 761.4


* Goodwill related to the acquisition of Allied Electronics Inc on 2 July 1999




c.    By geographical origin                                        2001   2000
                                                                      £m     £m

      Turnover:            United Kingdom                          457.2  464.3
                           Rest of Europe                          203.6  177.5
                           North America                           148.7   84.6
                           Japan                                     8.6    2.7
                           Rest of World                            37.0   32.3
                                                                   855.1  761.4


      Operating profit:    United Kingdom                          136.2  134.8
                           Rest of Europe                           38.5   31.8
                           North America                            26.4   15.2
                           Japan                                   (6.3)  (7.0)
                           Rest of World                             1.8    3.1
                           Contribution - before amortisation of   196.6  177.9
                           goodwill
                           Groupwide process costs                (65.7) (59.1)
                           Amortisation of goodwill*              (11.6)  (8.0)
                                                                   119.3  110.8

d.    By geographical location

      Net assets:          United Kingdom                          226.0  234.0
                           Rest of Europe                           54.4   44.8
                           North America                            38.1   29.1
                           Japan                                     3.1    4.1
                           Rest of World                            25.8   22.2
                           Net operating assets (excluding         347.4  334.2
                           goodwill)
                           Net debt                               (75.5) (95.8)
                           Unallocated net assets                  144.6  136.1
                                                                   416.5  374.5


The United Kingdom segment includes the discontinued operations of Pact.  All
other segments relate entirely to Continuing Operations.

* Goodwill relates to the acquisition of Allied Electronics Inc (North America)
on 2 July 1999


2.   Exceptional loss on closure

On 8 November 2000 the Group announced its intention to divest of Pact
International Ltd.  As no suitable purchaser was found the business was wound
down for closure from 1 January 2001 and ceased trading on 31 March 2001.
For the purposes of disclosure the activities since 1 January 2001 have been
classified as an exceptional charge and comprise:


                                   Profit and loss
                                                £m

Write down of fixed assets                   (0.7)
Write down of stocks                         (2.3)
Write off of goodwill                        (1.0)
Other closure costs                          (2.9)
                                             (6.9)
Taxation on exceptional loss                   1.8
Exceptional loss after taxation              (5.1)

                                          Cashflow         Cashflow    Cashflow
                                       9 months to      3 months to       Total
                                  31 December 2000    31 March 2001
                                                £m               £m          £m

Depreciation                                   0.4                -         0.4
Stocks                                         4.2              5.0         9.2
Other working capital                        (3.6)            (1.1)       (4.7)
                                               1.0              3.9         4.9


3.    Taxation on the profit of the Group                            2001  2000
                                                                       £m    £m

      United Kingdom taxation                                        25.7  27.2
      Overseas taxation                                               7.3   6.2
      Tax charge                                                     33.0  33.4
      Taxation on exceptional loss                                    1.8     -
      Tax charge before tax effect of exceptional loss               34.8  33.4
      Profit before taxation, amortisation of goodwill and          124.1 115.3
      exceptional loss
      Tax rate                                                        28%   29%





4.    Earnings per share                                             2001  2000
                                                                       £m    £m

      Profit on ordinary activities after taxation                   72.6  73.9
      Exceptional loss on closure of Pact                             6.9     -
      Tax on exceptional loss on closure of Pact                    (1.8)     -
      Amortisation of goodwill (excluding tax effect)                11.6   8.0

      Profit on ordinary activities after taxation and before        89.3  81.9
      goodwill and exceptional loss

      Weighted average number of shares                            433.1m 431.4m

      Basic earnings per share
             Before amortisation of goodwill and exceptional loss   20.6p 19.0p
             After amortisation of goodwill and exceptional loss    16.8p 17.1p



5.          2001 final dividend

The timetable for the payment of any final dividend is:

Ex-dividend date                                   27 June 2001
Record date                                        29 June 2001
Annual General Meeting                             20 July 2001
Dividend Payment date                              25 July 2001


6.    Reconciliation of movements in shareholders' funds
                                                               2001        2000
                                                                 £m          £m
      Profit for the year                                      72.6        73.9
      Dividends                                              (59.8)      (51.9)
      Retained profit for the year                             12.8        22.0
      Write back of goodwill on closure                         1.0           -
      Translation differences                                  24.4       (6.0)
      New share capital subscribed (net of Quest)               3.8         5.2
      Net addition to equity                                   42.0        21.2
      Equity shareholders' funds at 1 April 2000              374.5       353.3
      Equity shareholders' funds at 31 March 2001             416.5       374.5

7.    Net debt at the end of the year comprises:
      Current asset investments                                 6.7        24.1
      Cash at bank and in hand                                 10.6        17.2
      Overdrafts                                              (0.4)       (8.2)
      Debts due within one year                              (23.4)      (25.4)
      Debts due after more than one year                     (69.0)     (103.5)
                                                             (75.5)      (95.8)


8.    Principal exchange rates
                                  2001      2001        1999          1999
                                Average   Closing      Average       Closing
      United States Dollar        1.48      1.42        1.61          1.60
      Euro                        1.63      1.61        1.57          1.67
      Japanese Yen                164       178          178           164
      Australian Dollar           2.68      2.91        2.51          2.63





Basis of preparation



The financial information has been prepared under the historical cost
convention and in accordance with applicable accounting standards, using the
accounting policies set out in the Annual Report for the year ended 31 March
2000.



The financial information set out above does not constitute the Group's
statutory accounts within the meaning of section 240 of the Companies Act 1985
for the years ended 31 March 2001 and 2000, but is derived from those
accounts.  Statutory accounts for 2000 have been delivered to the Registrar of
Companies, and those for 2001 will be delivered following the Company's Annual
General Meeting.  The auditors have reported on those accounts; their reports
were unqualified and did not contain statements under section 237(2) or (3) of
the Companies Act 1985.



Copies of the Annual Report and Accounts for the year ended 31 March 2001 will
be available from 18 June 2001 from the Company Secretary, Electrocomponents
plc, International Management Centre, 5000 Oxford Business Park South, Oxford
OX4 2BH, United Kingdom.  Telephone [phone].  The Report will also
be published on the Corporate website at www.electrocomponents.com.



The Annual General Meeting will be held at Electrocomponents plc,
International Management Centre, 5000 Oxford Business Park South, Oxford OX4
2BH, United Kingdom on 20 July 2001 at 12 noon.